The role of the Zimbabwe Stock Exchange
They serve three critical functions:
Critical link
They provide a critical link between companies that need funds to set up new businesses or to expand their current operations, and investors that have excess funds to invest in such companies.
Market regulation
They provide a regulated market place for buying and selling of shares at prices determined by supply and demand, not withstanding other macro economic fundamentals.
Market integrity and fairness
The Zimbabwe Stock Exchange provides a properly constituted and regulated environment that ensures market integrity and fairness among stock market participants.
Fair trading and supervision of the stock market
They supervise and monitor the trading process to ensure transparency in the market and that no unfair practices are done to manipulate the market. Any off market deals and any unethical criminal activities are dealt with within the framework of the rules and regulations governing stock market transactions in Zimbabwe. Only stockbrokers and authorized dealers are allowed to transact in shares on behalf of the public.
So you want to invest in shares?
Stock market investments require professional advice on stock selection and portfolio management, which you can obtain from stockbrokers, fund and asset mangers before you can invest in shares.
Understanding the market
RegulationFor investorsTradingSettlementOther information
Regulatory environment
The Zimbabwe Stock Exchange (ZSE) Act reached the statute book in January 1974. The members of the Exchange continued to trade as before. However for legal reasons, it became necessary to bring into being a new Exchange coincidental with the passing of the legislation.
The present Exchange therefore dates back from the passing of the Act. In 2004, the Securities Act was promulgated to repeal the ZSE Act and became operational in September 2008. The Securities Commission of Zimbabwe is the capital market regulator and it became operational in October 2008 and is governed by commissioners appointed by the Minister of Finance with a tenure of four years.
Membership rules
The ZSE has rules that govern the conduct of its members.
Listings rules
The ZSE listings rules outline the guidelines and procedures for pre-listed, listed and those that need de-list on the bourse.
Background to the Zimbabwe Stock Exchange
The first stock exchange in Zimbabwe opened in Bulawayo in 1896. It was however only operative for about six (6) years. Other stock exchanges were also established in Gweru and Mutare.
The latter, also founded in 1896, thrived on the success of local mining industry, but with the realization that deposits in the area were not extensive, activity declined and closed in 1924. After World War II a new exchange was founded in Bulawayo and dealing started in 1946.
A second floor was opened in Salisbury (Harare) in December 1951 and trading between the two (2) centers was by telephone. They continued operating until it was decided that legislation should be enacted to govern the rights and obligations of both members of the Exchange and the general investing public.
Zimbabwe has a developed capital market with an active institutional base. Zimbabwe has a pension fund industry, an insurance industry, and a local asset management industry supported by nineteen (19) registered stockbroking firms.
